Agnico Eagle Mines Ltd. announced plans to cut its capital spending and other costs as it reported a loss in its latest quarter, hit by lower production at its Kittila mine due to an extended maintenance shutdown during the quarter.
The gold miner said Wednesday it lost $24.4-million (U.S.) or 14 cents per share for the second quarter compared with a profit of $43.3-million or 25 cents a year ago.
Revenue totalled $336.4-million, down from $459.6-million.
Excluding one-time items, Agnico-Eagle said it lost $4.6-million or three cents per share in the quarter.
In addition to the lower production from Kittila, the company said it was hit by negative settlement adjustments for byproduct metals at its LaRonde and Pinos Altos mines due to lower silver prices.
President and chief executive Sean Boyd said the company was reviewing all aspects of its business due to the recent drop in the price of gold.
"Today we are announcing capital and other costs reductions of approximately $50-million for the remainder of 2013," Boyd said in a statement.
"Additionally, we estimate that 2014 capital expenditures at existing mines and projects will be in excess of $200-million lower than our previous estimate of approximately $600-million."
Payable gold production for the quarter totalled 224,089 ounces, including 5,389 ounces from Kittila, compared with 265,350 ounces in the second quarter of 2012.
Excluding the impact of the shutdown at Kittila, total cash costs per ounce for the second quarter of 2013 were $785 per ounce, up from $660 a year ago due to lower byproduct revenue at LaRonde and Pinos Altos.
Agnico-Eagle has operations in Quebec, Mexico, Finland and Nunavut, along with exploration activities in North America, Latin America and Europe.